Officials upset over inequity in state’s school formula

Frustrated and angry over the unexpected increase in the town’s minimum local contribution to the Wachusett Regional school budget, town officials discussed actions ranging from a “Shay’s Rebellion”-type storming the statehouse with a busload of local residents, to legal action, to finally deciding to invite the town’s state representative and senator to a selectmen’s meeting to see what can be done about the formula that sets the amount the town must pay.

Selectmen at their July 1 meeting met with district deputy superintendent Darryll McCall, business manager Joseph Scanlon and the advisory board to discuss options regarding the school budget.

Three of the five regional towns have approved the FY2014 school budget. At its June 26 meeting, the Wachusett Regional School District School Committee approved a reduction of $1.4 million in the budget. While some of the other towns in the region saw a reduction in their share of the costs, Princeton was hit with a $500,000 increase in its minimum local contribution. Paxton is expected to hold a special town meeting this summer seeking approval of its share of the reduced school budget.

“Princeton is the town with the issue,” said McCall. “If we had come to you with this budget in January, it probably would have been OK.” He said the town’s MLC went up several thousands of dollars, and that happened at the state level. He asked what Princeton was going to do about the school budget.

Select board chairman Stan Moss said he’d checked the law and found that once the school budget is approved by a majority of the towns, anyone outside of that could take no action and the budget would be automatically approved. Either Princeton or Paxton has to have a town meeting, he said.

McCall said he’s checked with Christine Lynch at the state Department of Secondary and Elementary Education and learned that a town meeting isn’t necessary, that after 45 days the budget automatically rolls over if no action is taken. “Christine said if she were Princeton, she wouldn’t hold a special town meeting [and let Paxton take action]. It will just cost money.”

“Can we get something in writing from them to confirm that?” said town administrator John Lebeaux. “The board may still wish to call a special town meeting to have an open discussion of the matter. If Paxton accepts the budget, it’s a done deal.”

“Paxton will most likely pass it,” said McCall.

Scanlon said the issue was discussed at a Business Manager’s Association meeting and the consensus was that if no action were taken, the budget is approved.

Moss said that if the other four towns approve the budget, a special town meeting in Princeton wouldn’t make a difference. He questioned whether a town meeting vote and subsequent approval of the town meeting warrant by the attorney general’s office is needed to meet the requirements of the town accountant. “If we got something from Christine Lynch, that would make it OK for the accountant. I think we have to play this out as to whether we need a town meeting or not,” Moss said.

“It’s frustrating,” said selectman Neil Sulmasy. “The contribution level was one number at one point then the formula changed without any explanation of why. Residents are frustrated and I don’t blame them. You guys have given us information the best you can.”

“We came out of town meeting expecting the average tax bill was going down $337, and now it’s going up $17. That’s a 7.5 to 8 percent swing on the tax bill. Under any other circumstance if we asked for that kind of change, it would be precedent-making,” said Moss. “What’s the penalty for non-compliance? The sizeable swings in the minimum local contribution don’t make any sense.”

Scanlon said it wasn’t just the MLC that changed, but the foundation budget was changed by the department of education, which owns the formula. He said the Department of Revenue looks at property values and salaries of residents, and then the legislature looks at it.

In 2007, the equity formula passed with a five-year implementation plan, said advisory board member David Cruise, so that over time every town would be treated fairly.

“But really Princeton is still overpaying by $400-$500 per property tax bill. It was unfair in 2007 and it’s still unfair,” he said. “You get hurt until you have political clout.” He said Rutland will pay half of what Princeton pays for students in the same classrooms.

Advisory board member George Handy said Princeton pays more than Harvard and Wellesley in per pupil cost. “We pay 93.3 percent of the $8,700 per pupil cost, or $8,200,” said Handy. He said Rutland pays $3,374 – “We’re paying more than double that.” Sterling pays $6,300, Paxton $6,000 and Holden $5,400, he said.

School enrollment plays a small role, according to school officials. Princeton isn’t the only town with diminishing student population, said McCall. Rutland is starting to flatten out but the number of new students registering in Princeton is under 20, he said. Ten years ago it was 60 and school choice didn’t kick in until six years ago. “You’re looking at almost half the student population in the future will be 25 to 35 percent school choice,” said McCall.

“Trying to get a handle on the disfunctionality [of the state formula] is very difficult,” said Princeton WRSDC representative Robert Imber. “We’re paying 94 percent and it has nothing to do with the number of kids.”

“It’s really the minimum local contribution,” said Moss. “I don’t think on an income and asset basis we’re 2.17 times better off than Rutland. Being 25th highest in the state means we’re higher than Dover, Wesley and Newton. Our minimum contribution is higher than Newton’s.”

“People... at the annual town meeting thought the tax rate was going down,” said Handy.

Lebeaux said Paxton’s increase of approximately $23,000 (after the $1.4 million reduction) rather than the $120,000 increase it voted down at the May annual town meeting means it will likely approve the new school budget.

They should take an aggregate of the wealth in the five towns and charge all towns evenly, said Lebeaux. “But there’s not the political will to do that.”

Officials acknowledged that it would be a challenge to get voters to attend a special town meeting in August.

“If we had enough people show up, they could make their voice heard and let Boston know from the citizens how they feel,” said Sulmasy. “I lean toward a town meeting.”

“If I were told that no matter what we do at a town meeting it doesn’t matter, I wouldn’t bother to go to the meeting,” said Cruise. “The outrage is valid but they have a formula they say is fair but certainly not to Princeton.”

Princeton needs to find out if there are other towns in regional school districts that have the same problem with the MLC, said Moss. “We have more of a chance if we unite,” he said.

Cruise and Handy said they would be willing to work on the inequity issue and McCall said he’d be willing to help out. Selectmen thanked McCall and Scanlon for working with the town.